An ethical question

[2952-0-0]

So let's say there's this fascist and corrupt dictatorship somewhere, ruled by a tyrant who relies on a loyal army to stay in power. Let's call him Bob from Zimbabwe.

He racks up massive amounts of debt on the global credit markets, which he uses to buy extra Rolls Royce cars, Swiss bank accounts, and pay off his cronies.

Eventually the people become tired of his rule, and they revolt and overthrow the regime.

The new government has two choices: declare all the debt as odious, arguing the people should not pay for a tyrant's repression, and default; this will make it harder for the government to access lines of credit and improve the nation. Or it could assume the debt, essentially paying for the repressive regime and depriving funds for public investment, and make lines of credit easier to access.

Should this new government assume the debt?

[dead0man]

If they can't get credit without paying it off then they really don't have a choice do they?  How does it normally work in real life?

[I spent the winter writing songs about getting better]

I don't think Iraq's government assumed the debt of Saddam's regime. Anyway, one can argue this is the fault of the creditors for propping up a repressive regime.

[The Man From G.O.P.]

Ask the West for cash/investment giving them a firm grip on returns.

[Associate Justice PiT]

     They should go ahead & assume the debt. Why should the country continue to suffer because of the dictator after he's gone?

[John Dibble]

The new government should pick whichever is best for the people. Unfortunately that's not clear cut. In one scenario they have to pay off a debt they probably can't afford to pay, and on the other hand they don't pay it and they may not be able to get credit in the future.

However, I think if this happened the country's debt would either be forgiven or they would receive help from 1st world countries interested in developing the nation.

[Verily]

However, I think if this happened the country's debt would either be forgiven or they would receive help from 1st world countries interested in developing the nation.

Agreed, I think there would be pretty heavy pressure on the creditors to forgive the debt. On those grounds I say no, they should not assume the debts.

[Kaine for Senate '18]

However, I think if this happened the country's debt would either be forgiven or they would receive help from 1st world countries interested in developing the nation.

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